While working in any industry around the world, the most important things are to ensure that you master the skills and knowledge to operate in that area. You want your business to always achieve much success by having the largest market share and also recording the highest revenues. However, you will only be able to achieve these goals if you are only focusing on how to improve your business rather than focusing on other aspects that are not important in your organization.
- Trucking Industry
The trucking industry is one of the largest revenue generating sectors in the United States. Recent reports from the commissioner of tax collection indicated that the industry generated more than $700 billion, which is way above what other industries across the country have been generating. A considerable number of people, especially the market observers, highlight that the trucking industry is expected to generate such amounts owing to the large imports and exports.
Despite such results, there are other trucking industries that are recording very little revenues. Competition could be one of the main factors that are affecting these companies. It is common knowledge that there are many trucking companies in the United States, which means that the industry is very competitive. However, studies show that despite the extreme competition prevailing in the industry, issues to do with compliance could be causing some companies to record very low profits.
- Compliance in the Trucking Industry
The Department of Transportation, which is the United States federal agency that focuses on keeping the transportation system safe, requires trucking companies to be DOT compliant. There are various sensitive measures that have been put in place to make sure that all trucking companies have obliged. Failure to not comply means they cannot operate on the United States roads.
TBS DOT compliance services help trucking companies to meet most of the DOT requirements by ensuring that some of the sensitive aspects have been addressed before the truck hits the road. Permitting and fuel tax reporting services are some of the DOT requirements that trucking companies should produce. There are other compliance requirements that trucking companies have to comply with such as loading capacity, among others.
- Delegating Duties in the Trucking Industry
The problem with most of the companies that are operating in the trucking industry is that they need to handle everything that involves DOT compliance, motor insurance, truck repair, and even human resource management. It is very difficult for a company to handle all activities. Trucking companies that try to handle everything by themselves are bound to fail, which explains why some trucking companies have been recording very little revenues.
Delegating duties to a specialist makes things easier and results are expected. It means that a trucking company will continue to do what it does best, trucking parcels and products and delivering them to their customers. The other activities, such as complying with DOT requirements, are handled by an agency that is specialized in that area. This means that companies have to be prepared to spend money if they want to be successful in their sector.
Important Trends in the Trucking Sector
After highlighting how DOT compliance is important to trucking companies, it is important to mention some of the emerging trends in the trucking industry. These trends will help companies to prepare themselves in advance so that they can continue maximizing their output. Some of these trends have been discussed below.
- Rise in Tax
Trucking companies should be prepared to experience financial turbulence occasionally, especially due to tax increases. Taxes are bound to rise in the future and it’s upon the trucking companies to be prepared to handle the rise. Federal excise tax, road, and fuel taxes continue to rise, which will affect the net income of these companies.
- The Rise in Fuel Cost
It is common knowledge that fuel cost has been the biggest expense in the trucking industry. This has been a challenge, especially due to the continued increase in fuel prices. This will continue to be a problem to the trucking companies as there is nothing showing or indicating that diesel prices will fall.
- Rise of the E-commerce Industry
Despite the current challenges, the rise of e-commerce industries is a significant boost to the trucking industry. There will be more goods to transport in the future as many people start buying through e-commerce platforms.
